Morning journal and courier., 1887-03-12
rHE pERRx,s SALE oPposEp.


 holders of The Derby-Misstatement ents Said To Have Been Given out About tFreights-What The COnsoli- dated Roads Freight Agent Says In ContradIct1On-Shal The Derby Be Sold To The Highest BIdderf
 The committee room at the City Hall was we'll filled by an interested crowd of business ! men and citizens last evening, who had come to hear the opposition evidence to the propo- sition that the Derby railroad should be sold to the Housatonic Valley railroad company. | Promptly at 7S0 o'clock the committee took
 their seats, Alderman Dickerman in the pre- l siding chair, Mayor York being unavoidably ! absent. After the meeting had been called l to order MT. J. B. Sargent arose and stated | that he was present to represent himself, 1 Joel A. Sperry, president of the Derby road,
 and other stockholders of that road. q
 want to explain my position, said Mr. Sar- gent, ''and that is this It is we'll known | that I have been opposed to the building of the Derby. l strenuously op- posed it. The same persons who wanted the city to embark in this enterprise are the ones who now want the road disposed of. These persons are not infallible, as events | in connection with the Derby which have
 taken place plainly show. And they may
 
 the socialistic principle that the city should build the roads and the State should have nothing to do with them we might we'll do other ruinous things which not half as bad this. Tue idea is advanced that the road is 8 parallel one to the Consolidated This may be a fact for awhile, but it is
 probable it would be for a very short while.
 There is nothing to hinder the mbining, ,the
 pulling together and the charging of the same rates as now if not higher than they are now.
 What we want is legislative control over the
 railroads of the State. The remedy, if New
 Haven has been discriminated against as regards her freights, is in the legislature.
 I have been opposed to the cities taking stock
 in 8 railroad or any municipalities control
 ling railroads. It is on this account that have been opposed to the city entering into the Derby, but the majority of the people at
 the time the road was built thought differ ent The city has advanced large amounts of money on the Little Derby The time has come that the road has prospered and it's condition is most excellent, both financially and as railroad. The Derby could to day begin paying dividends if it's indebtedness could be funded at, say, per cent. interest. It is now funded at a much heavier rate. Whenever the time comes when the interest can be lowered to per cent. the road will pay handsome dividend"
 MT. Sargent then introduced Dr. J. P. Phillips, whom he said had come long dis tance to be heard. 'I appear before you on my own account and as a taxpayer of the city," said Dr. Phillips. 1T wish to call your attention to what took place when the proposition was first made to build. think false issues have been left before you. The question is whether at this time, at this price and to these parties the road should be sold. To all these questions my opinion is in the negrtive. At this time I think it is inopportune. The road has no intrinsic value whatever. It's value depends on the bus mess, the carrying of freights and passengers. After the Poughkeepsie bridge is built an additional demand will be made for connection with the Little Derby. Out side conditions must create successful rail- road. If the time is to day or is ever to come when the Derby road forms the line to the river, that connecting link to the Hudson will be built. Whatever price this road will bring to-day it certainly will bring larger price after the completion of the bridge. I say now is the wrong time for the selling of this road. There has been some talk about selling it for $25,000 S5O,O00 less than the market price. l wish to know what right this committee has to sell this road for less than the market value. This road has been held for eighteen or nineteen years without much profit. The time will come, however, when it will be worth more than it is to day. When the proper time comes this road should be sold to the highest bidder. The sale should be advertised in the papers and the conditions stated. Then the ques- tion would arise, what should we sell for? Certainly not at the price now offered the city by the Housatonic company. Better to keep it. You, gentlemen of the committee, should not be influenced by the elamor that is now raised for the sale. In an- swer to questions put by Attorney filling, who was present in company with Morris F. Tyler to represent the inter ests of the Housatonie Valley company, Dr. TpI .IHs.- a. Ia, and real estate agent, and when asked if he had any other profession stated that he could hoe corn if it was necessary. In speaking of the possible chances of the connection be- tween the Hudson and the terminal of the 1 Derby, Dr. Phillips said that there would be lines that would find it to their | interest to send freight cars through to New Haven and that there are railroad l men looking for just such an opportunity all l the while. I don't advocate the selling of the l Derby at this time at all either to the Housa- tonic company or to MT. Sargent" Alderman Barnes-In your opinion has the | Derby been of any interest to the citya
 Dr. Phillips-IG has no doubt been of some advantage, but it was built at time when | it cost a great deal more than it would if | they had waited for 8 few years longer. The | city would have been better off if the Derby f had never been built.
 Alderman Barnes-Has the road been | or any DeQ6QC 10 the business men directly! |
 Dr. Phillips-My opinion is that the busi- | ness interests of the city would have been | better off if the road had not been built at | the time it was, or at least until later.
 Alderman Dickerman-What price would | you ask if the road was being sold to-day | under your terms?
 Dr. Phillips-I would advertise and sell to | the highest bidder, all conditions being | equal.
 William c. Edgerton, the general freight agent of the Starin line of steamboats with residence in New York, was next called by Mir. Sargent. Agent Edgerton said in an swer to questions put by MT. Sargent: "We freight from the Naugatuck valley over the Derby railroad. The water freights between New York and New Haven were reduced five per cent. upon the birth of the Starin line because of the competition. believe com petition to be the life of trade. It is said by good authority that the Starin line has saved he business men at the least cal .ulation $200, 900 year for each of the four cen years that it has been in existence. | The company is not getting rich very fast, however. don't think this line could con- inue in existence if it was to lose the Derby l hem only what was consigned to the line. I 'ame here by request of MT. Starin, who vas unable to be present."
 Treasurer Charles Atwater, who has been reasurer of the Derby railroad since it was quilt in 1868 and is still in office, was the lext person sworn, after which MT. Sargent questioned him in regard to he condition of the Derby road several years go and it's condition now. After stating the ost of the road and equipments. which was 920, ,816, general rehearsal of the roads condition during the past eight or ten years vas gone over. Mir. Atwater thought there were good prospects in store for the Little Derby. "The traffic, said he. s'has warrant d our purchasing several new cars. The road s now in hourishing condition. We could 'ay for our new cars today if we had mind o. We have 0,O0O on hand and are not lard pressed. We have been paying interest n our debts since 1884. The income is now large to pay interest on the whole ebt and still leave surplus, which was the ase last year. I am strenuously opposed to l he selling of the Derby because think the ity should keep it for few years longer at he least when 1t can undoubtedly get much arger price for it.
 Attorney Alling-Are you in favor of mu- cipalities owning railroads? MT. Atwater-Only when they own ''Litt1e , Derby" stock.
 Assistant General Freiobk oapt NatboD F.